In an Aug. 23 Travis County court filing, the private equity real estate firm Velocis defended its plans to build a 270,000-square-foot warehouse facility next to the Sweetwater neighborhood off Hwy. 71.
The overview
Shortly after community members sounded alarm bells about the new construction, the city of Bee Cave filed a lawsuit on Aug. 14 alleging the project violates the city's code and a 2015 development agreement which designated the land for "commercial and office" use.
On Aug. 16, a judge denied the city's request to immediately halt the construction via a temporary restraining order. Since then, the injunction hearing was postponed so other parties, such as the city of Lakeway, may join the lawsuit.
In response to the lawsuit, Velocis issued a statement saying the company "has proposed that both parties participate in a collaborative mediation as the preferred path forward."
Additionally, Velocis said the company "strongly believes it will prevail if forced to litigate the [city of Bee Cave's] claims."
What they're saying
While the city of Bee Cave said current leaders were not notified about the industrial nature of the facility, Velocis stated the company followed all notice requirements outlined within the development agreement.
Velocis filed evidence of a Nov. 29 post-closing agreement which was emailed to former City Manager Clint Garza and former Director of Planning & Development Megan Will following Velocis' purchase of the land.
The agreement states within 36 months after the closing, "the purchaser shall construct a distribution center, fulfillment center, or light-industrial warehouse facility."
Additionally, Velocis claims the city's current zoning regulations would allow the warehouse to be classified as "commercial."
The city of Bee Cave declined to comment about these claims due to ongoing litigation.
What else?
Velocis claims the distribution center was built to be complementary to the surrounding area, adding that the company provided notice to the neighboring Madrone Canyon subdivision in February.
However, a builder for the subdivision and President of Ames Design Build, Grant Ames, told Community Impact "the Madrone Canyon neighborhood and other affected neighborhoods know there's much more to the story than the response that was given by Velocis."
More detail could not be provided by Ames as of press time.
What's next?
Bee Cave City Council is set to discuss the litigation in closed session on Aug. 27.
